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1 year ago

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A company rents office space for $10,000. The company hasn’t yet recorded payment as an expense in the financial statements beca

use it hasn’t started using the premises.

1 answer:

zepelin [54]1 year ago

6 0

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Trueware Corporation is a start-up firm with a capital structure that includes 25 percent debt. Trueware has no preferred stock.

defon

Answer:

$1.53

Explanation:

Calculation to determine the difference in earnings per share (EPS) for the capital structure

Debt = 0.25 × Total assets = 0.25 × $500,000

Debt= $125,000

Equity = (1 − 0.25) × Total assets = 0.75 × $500,000

Equity = $375,000

Net income (NIRuby) = [EBIT - (Cost of debt × Total debt)] × (1 - Tax rate)

Net income (NIRuby) = [$80,000 - (0.10 × $125,000)] × (1 - 0.3)

Net income (NIRuby= $47,250

EPSRuby = Net income/Number of shares outstanding

EPSRuby = $47,250/22,000 shares

EPSRuby= $2.15 per share

Net income (NIEmerald) = [EBIT - (Cost of debt × Total debt)] × (1 - Tax rate)

Net income (NIEmerald) = [$32,000 - (0.10 × $125,000)] × (1 - 0.3)

Net income (NIEmerald) = $13,650

EPSEmerald = Net income/Number of shares outstanding

EPSEmerald = $13,650/22,000 shares

EPSEmerald= $0.62 per share

Difference between the earnings per share = $2.15 - $0.62

Difference between the earnings per share= $1.53

Therefore the difference in earnings per share (EPS) for the capital structure is $1.53

5 0

1 year ago

The following selected transactions relate to cash collections for a firm that maintains a $100 change fund at all times. Presen

irakobra [83]

Answer:

a, Journal Entries to record transactions

Account Titles Debit Credit

Cash $5,412.36

Cash Short and Over $0.71

($5,413.07 - $5,412.36)

Sales $5,413.07

The actual cash in cash register is debited to cash account and cash receipts per cash register tally is credited to sales account and the balancing figure is debited or credited to Cash short and over account.

b. Journal Entries to record transactions

Account Titles Debit Credit

Cash $3,712.95

Cash Short and Over $0.79

(3,712.95 - 3,712.16)

Sales $3,712.16

7 0

1 year ago

One of the four most fundamental factors that affect the cost of money as discussed in the text is the expected rate of inflatio

Leto [7]

Answer:

False

Explanation:

One of the four most fundamental factors that affect the cost of money as discussed in the text is the expected rate of inflation. It is false to say, if inflation is expected to be relatively high, then interest rates will tend to be relatively low, other things held constant.

5 0

1 year ago

After assessing the market growth potential and market competitiveness in Mexico for his company's baby products, Harold wanted

Arturiano [62]

Answer:

After assessing the market growth potential and market competitiveness in Mexico for his company's baby products, Harold wanted to evaluate market access. To do this, Harold would consider ease of assessing or developing distribution channels and brand familiarity

<u>Explanation: </u>

Harold would, first of all, find out the ease in accessing the market. If he finds that it is easy to access the market or target the consumers than he will develop distribution channels. Distribution channels take lots of time and effort.

Than Harold will determine the brand familiarity which means he will make the consumers familiar with his company's baby products. Brand familiarity affects the consumer's information about the product.

5 0

1 year ago

The ____ section of the project scope document is where the contractor or project team can state and clarify exactly what is inc

MA_775_DIABLO [31]

The<u><em> statement of work </em></u>section of the project scope document is where the contractor or project team can state and clarify exactly what is included in the work scope and provide an opportunity to reconsider items that are not stated but that the customer may have forgotten to include in her requirements or RFP.

I hope this helps :)

6 0

2 years ago